Analysis On Correlation Of Chinese And Usa Stock Market

This article analyzes the correlation effect of the continent stock market and the international stock market ,which basis on the liquidity conducting,international price difference of financial assets, differences of confidence of the investor while the stock market is up and down. Then it analyzes the factors which influent our country's stock market from two stage(around the world financial crisis), in order to definite the factor of correlation degree between Chinese and American stock market, after this, carry out analysis the phenomenon of correlation affect from weak to strong.The America supplies excessive liquidity to the worldwide and trading surplus to newly emerging Asian markets, which will definitely produce a wide range adjust and then leads to unstable world financing system. As our country still be strict to the management of the overseas investment, the direct transfer of the international liquidity is weakening to a certain extent. Meantime, the forming mechanism of the excessive liquidity between China and America is different. American loose currency environment in recent years causes his excessive liquidity, while newly emerging countries'counterpart is because of surging foreign charge reserves aroused by long time trading surplus. Thus, the influences brought by excessive liquidity to the two countries'shares markets is relatively independent, which leads to the weak relationship between Chinese and American shares market in assets bulging times.While after the outbreak of the financial crisis, our country's excessive liquidity can not be digested in a short time, because it is the result of a long time accumulation. But in America it shows a reversing liquidity, which means the cause of the relevance existing in the Chinese and American shares markets during the plummeting times is not the same liquidity of the two parts but the significant risk spillover effect. At the same time, most of our country's irrational investors, show strong herd behavior, which makes the fall of the shares market even worse, finally brings China's shares market to be with the largest decrease worldwide. Bad news from America shocks our shares market directly, which shows strong relevance.